France Just Locked In Its Votes to Stop Europe From Backing Down on EV Rules But Germany Wants Exactly That

Here's what happened in May: electric vehicles made up 22% of new car sales across Europe's main markets. That's up from 17% the same month last year. In France specifically, EV sales jumped 93% year-on-year and accounted for 29% of the market.

The spike is directly connected to what France is calling the "Hormuz energy crisis." Basically, the war in Iran sent fuel prices skyrocketing, and suddenly, people started seriously considering electric cars instead of gambling on gas pump prices. That crisis, in turn, has changed European climate politics in real time.

France looks at those numbers and is saying: the ambition is working. We shouldn't back down. Germany and Italy look at the same numbers and are saying: actually, maybe we should ease regulations on combustion engines and plug-in hybrids.

What's Actually Being Fought Over

The European Commission proposed in December 2025 that cars and vans should achieve a 90% CO₂ reduction from exhaust emissions by 2035. That's weaker than the original goal of phasing out petrol and diesel entirely, but it's still a real target that requires serious electrification.

Some member states and the car industry want to water it down further. Germany wants to relax rules around plug-in hybrids (cars with both gas engines and electric motors). Italy wants to allow biofuels to count toward emissions reduction targets. Both want more flexibility.

France assembled what it's calling a "blocking minority" with enough votes to prevent further weakening, along with seven other countries, including the Netherlands, Spain, Sweden, and Denmark. They're essentially saying: the energy crisis proved people will buy electric cars. Stop trying to make the rules weaker.

Why The Energy Crisis Actually Matters Here

The Hormuz crisis (Iran conflict sending oil prices up) seems unrelated to European car regulations. But it's directly connected. When fuel prices spike, people start seriously considering whether paying for gas is worth it. EV adoption jumps. Suddenly, the ambition to phase out combustion engines doesn't look radical; it looks inevitable.

French Climate Minister Monique Barbut said it plainly: "After the crisis that we have just gone through with Hormuz, in France, there has been an explosion of sales of electric vehicles. It would be a terrible signal to go back on this car regulation."

That's France's actual argument. We just proved the transition works. Energy shocks make people want EVs anyway. The regulations aren't obstacles; they're just accelerating something the market is already doing.

But Germany Doesn't Agree

Germany and Italy are pushing in the other direction. Germany specifically wants to ease regulations around plug-in hybrids, which are essentially a hybrid car with both a gas engine and electric motors, so you can use whichever is convenient.

From a business perspective, that makes sense for Germany's car industry. Plug-in hybrids are easier to manufacture than full EVs. They don't require massive battery infrastructure investments. German manufacturers already know how to build them.

But from a climate perspective, they're a delay tactic. A plug-in hybrid is still burning gas half the time. It's not the same as full electrification.

The real problem is that France and Germany have different priorities. France wants strong EU-wide manufacturing targets for EVs (to boost European production). Germany wants that less, and is more focused on relaxing plug-in hybrid regulations.

The Car Industry's Play

Porsche's new CEO, Michael Leiters, just praised a conservative European Parliament member's report that basically asks for all the industry concessions, more flexibility on plug-in hybrids, easier CO₂ targets, and less pressure for full electrification.

That's not an accident. The car industry is banking on Germany's political weight to slow down the transition timeline. Not to stop it, the market's already moving that direction anyway. But to buy more time before they have to fully commit to manufacturing only electric vehicles.

What Actually Happens Next

Right now it's a stalemate. France has enough votes to block further weakening. Germany has enough political weight that nothing gets stronger either. So you're probably looking at the December 2025 Commission proposal staying roughly where it is, a 90% CO₂ reduction target by 2035, which is real but not as ambitious as a total phase-out.

Climate commissioner Wopke Hoekstra noted that EV sales are "truly spectacular," which is basically code for: the market is already doing the work. We don't need to push as hard because people are buying EVs anyway due to gas prices.

That might be true, but it's also how you get complacent about climate targets. The market can shift again the moment fuel prices drop.

The Real Tension

This whole fight is really about timing and cost. Faster transition to EVs means faster investment in factories, charging infrastructure, and battery supply chains. That's expensive and disrupts existing car manufacturing regions.

Slower transition means existing factories keep operating, existing supply chains keep working, German manufacturers don't have to completely retool their operations. That's cheaper and easier in the short term.

France wants the faster timeline partly because it wants to build EV manufacturing in Europe. Germany wants flexibility partly because its existing manufacturing base is built around combustion engines.

Both sides are looking at the same EV sales numbers and reading opposite lessons from them.

An energy crisis spiked EV sales across Europe. France said: See? The transition is working, don't back down. Germany said, " See? The market is doing fine, so we can ease regulations. Both are happening at the same time, and EU regulations are stuck in the middle.

The 90% CO₂ reduction target probably stays. That's real progress. But it's not as ambitious as it could be, partly because Germany's political weight is keeping it from getting stronger, and partly because energy markets are doing the work anyway.

Sometimes the market does what policy can't push. Sometimes that's enough. Sometimes it means you're just getting lucky.